Ex-CEO of American Apparel ordered to cease criticism of firm

Fired American Apparel founder Dov Charney was ordered by a judge to muzzle his criticism of the struggling clothing retailer, at least temporarily.

Delaware chancery judge Andre Bouchard yesterday granted American Apparel’s request for a restraining order against Mr Charney, putting the kibosh on the former chief executive officer’s alleged campaign to win back control of the firm he founded in 1998.

Mr Charney must abide by a 2014 agreement barring disparaging statements and actions to influence or support third parties ahead of the company’s annual meeting on July 18th, the judge said.

Mr Charney has been engaged in a war of words with company officials since June 2014, when the board voted to suspend him and later fired him for alleged misconduct.

Mr Charney filed a $20 million defamation lawsuit against the company and investor Standard General. – (Bloomberg)